Although the majority of Brits have some form of debt, taking out a loan is still a very controversial subject and, there are many negative preconceptions that have taken hold of people's minds.

Whether you're watching the telly or reading your favorite financial magazine, you'll find a self-proclaimed financial guru trying to convince you that taking out any form of credit will enslave you and, utterly devastate your finances. Although this may be the case when looking at people with multiple large debts, several credit and store cards, unpaid bills and a never-ending stream of payday loans - the majority of people don't go to these extremes and can actually improve their financial situations and lives by taking on credit. Here are 6 good reasons why getting a loan is, really, not the end of the world.

1. Loans are temporary

This may sound blatantly obvious but, one of the major reasons that taking out a loan is really not as tragic as some may have you believe, is that it is only TEMPORARY. Just because you take out a loan to repair your water-damaged ceilings or use your credit card to buy a new dryer, doesn’t mean that you'll be caught in a spiral of debt for the rest of your life. A simple trick to ensuring that taking out a loan really doesn’t become the end of your world is to only borrow what you need and, not a penny more. As long as you maintain the monthly repayments as agreed you'll surely become debt-free sooner than you know and ready to tackle any other curve-balls life may throw at you.

2. Loans can be affordable

So many people believe that credit is devastatingly expensive and, although this may be true for people with very bad credit history, loans can be very affordable for most. Credit cards, for example, can actually offer you interest-free spending and lending in the case of 0% interest purchase or balance transfer cards and, if you're not losing money, why not make use of the services available to you? Personal loans offered by all banks and credit unions are also very affordable and can come at a minimal interest rate that you'll barely notice.

3. Loans can improve your credit rating

There's actually a reason why there are so many alternative lenders out there who specifically target people with "no credit history" - because banks and credit unions are simply unwilling to lend money to people who have no credit history. In such cases it can actually be beneficial to take out a loan because it can help you establish some form of credit history and open the doors for big-ticket items like the purchase of your first home or vehicle financing.

4. Loans can improve your life

Most people have either had or, still have, outstanding student loan debt - and although this usually isn't bunched up in the same group as personal loans and payday advances, it's still debt. The only difference is that people see it as an investment in their future's and therefore as "good debt". Well home loans are certainly an investment in your future and, some would argue, that a trip to India is also an investment in yourself. The point is, a loan can give you the means to achieve, to experience and to improve your life and this is certainly not the end of the world - it's the beginning.

5. You can settle debt - at any time

So let's assume you apply for a small personal loan to have your house retiled and, a few months into it, you start regretting your decision, and get the debt-blues. In such a case, you're more than entitled to contact your lender and ask them to provide you with a full settlement quote and to settle the debt accordingly. Just  because you've agreed to a set term doesn’t mean that you can't pay the debt off early or make additional payments to pay it off sooner. Despite all the red tape - lenders are obliged by a code of good practice to allow you to exercise your consumer rights and - debt settlement is certainly one of them. 

6. Loans can make you money

Loans are usually associated with losing money but, this is a very narrow and one-sided point of view that is, quite frankly, absolute rubbish. Take, for example, the plight of an entrepreneur to mind - although he has a great product, a great marketing strategy and can certainly sell his stuff he simply can't afford to take his idea beyond just that - an idea. By taking out a business loan to purchase the required equipment and get his start-up going he is afforded the opportunity to make money, create jobs and better his community.